I have a few things in debt, and will be paying them off shortly, I'm sad to say my CS is <550... I'm wondering what I should do after clearing anything such as a Credit Card. Special steps to remove from record etc? And how long does it usually take to clear from your credit score to see the effects.. finally...does it make a difference to settle or pay full price on a debt? Thanks a lot everyone!
After clearing your credit card debt, make regular purchases with your credit card, but do not use up your credit limit. Use only at least about 30% of your limit, pay off the entire balance each month few days before due date. Never miss a payment. This activities will help increase your credit score. Also, if you can make other types of loans that can be reflected reported to credit bureau that you can afford to pay, do so. It usually takes at least a month before any activity in your credit history is reflected on the credit reports. It takes about seven years before a negative report is removed and it can be done by disputing the report through a letter where you provide information to disprove the negative report and why it should be removed.
Welcome to Creditnet Sakujou! The best possible outcome is to negotiate the removal of any negative accounts on your credit reports in return for payment. "Settling" a debt, or even paying something off in full that will remain on your credit report as a "paid" collection will continue to hurt your credit scores. If you're not able to negotiate removal in return for payment, the negative mark will remain on your credit reports for 7 years from when the account first went delinquent.
Hey thanks for the responses both of you! I will be paying off my CC Collection completely on Monday, wish me luck That is actually the only CC in Collections, my other two items in collections are previous mobile phone services..do those work the same way as CC as far as removal? or do these not hurt as bad?^^ Thanks a lot
If one of your concerns is whether you will still have chances of getting a credit card because of credit score issue as well as indebtedness, then I have something important to tell you. For your information many credit card company facilitates issuance of credit cards to people with bad credits and those having financial problems. All it takes is telling these people what is your situation, so that they would know how they can help you.
I don't care to get a CC, my purpose of repair is more of making it so I am approved for a good car loan so I can get a car, with very low annual interest, or even just being approved period.
Treat the mobile phone collections in the same manner. If they're less than $100, the FICO scoring model may be looking past them, but any unpaid collection on your credit reports is unwelcome in the eyes of a potential lender.
